7 Strategies for Smart Vacation Spending

Planning a vacation? It’s easy for travel expenses to get out of control without setting a few ground rules for how and where you’ll be spending your cash before you take off. Here are seven smart strategies to help keep your spending on track:

1. First, start a vacation fund no matter where you are in the planning process. To get started, ask yourself what you can give up to add a little extra money to the vacation coffers—can you skip your weekly manicure or bring lunch to work instead of eating out? Keep your vacation money separate from the accounts that you use to pay your monthly expenses so that you’re not tempted to use it for other things.

2. Set a budget to plan how much money you want to spend and help you make smarter purchases while traveling. One Women & Co. community member told us that without a budget, it was way too easy for her to purchase big ticket items simply because she was “on vacation," and in the end, it added up to a lot of money. When you’re figuring out your vacation budget, make sure to factor in local transportation costs; pet care if you’ll be traveling with a pet or kenneling an animal while you’re gone; and an emergency fund that’s at least 20% of your entire vacation budget.

3. Be realistic about how much you can accomplish. It won’t be much of a vacation if you’re exhausted from trying to pack too much in each day. If you’re traveling with small children, don’t plan on more than one major activity each day—and you’ll cut down on entertainment costs, too!

4. Before you book, review the travel benefits offered by your credit card. The Citi ThankYou® Premier card, for example, gives you access to a complimentary domestic (contiguous US) companion ticket each year; the ability to redeem ThankYou rewards points on any airline with no blackout dates; no foreign purchase transaction fees*; and allows you to earn 33% more value** for your rewards points when you redeem them for travel.

5. Save on airfare by booking at least six weeks in advance, and search for departures on Tuesdays, Wednesday and Saturdays to get the best fares. When pricing out flight options, don’t forget to consider alternate airports that might be within close proximity to the main airline hub in your vacation destination. If you’re traveling to NY, for instance—the #1 destination for airline travel in summer 2012, according to the travel team at Citi Cards— you’ll want to look at Newark, LaGuardia, and JFK to see which airport will give you the best rate. Connecting flights and early-morning departures can also help you save—but make sure that you factor in the costs of your trade-offs. If a 6am flight means you’ll have to take a cab to the airport instead of public transportation, you may end up spending more in the long run.

Keep your vacation money separate from the accounts that you use to pay your monthly expenses so that you’re not tempted to use it for other things.

6. Travel with a group of friends or family to cut down on costs on everything from accommodations (renting a house instead of individual hotel rooms) to meals (cooking family-style meals at your rental house or suite instead of dining out). To ensure that splitting costs goes smoothly, make sure that you get on the same page before you start planning the trip about the level of accommodations and activities that everyone expects. Plan your expense-sharing strategy ahead of time—will you chip in equal amounts for a pre-paid credit card and use that for all of the expenses, or will one person pay for everything, and you’ll settle up after the trip is over? And have everyone contribute to the vacation fund—it’s a great way to teach children how to save.

7. Walk the walk. Once you’ve arrived at your destination, don’t always rely on taxis to take you around. Walking is a great way to see the sites and experience the culture—and burn off some of the extra calories that you’ll consume while savoring the local cuisine!

Last but not least, be flexible. Unexpected costs or opportunities might come up along the way, but don’t be so rigid in your planning that you don’t take advantage of unique experiences that could provide you with a wonderful vacation memory—which will last a lot longer than the temporary dip in your bank account.

* DISCLOSURE: The standard variable APR for purchases for the Citi ThankYou Premier Card is 13.99%, 17.99% or 22.99% based on creditworthiness. The standard variable APR for cash advances is a variable 25.24%. The variable Penalty APR is up to 29.99% and may be applied if you make a late payment or make a payment that is returned. The annual fee is $125. The annual authorized user fee is $50. However, both the annual fee and the authorized user fee are waived for the first 12 months. Minimum interest charge – $0.50. Fee for Foreign Purchases – None. Cash advance fee – either $10 or 5% of the amount of each cash advance, whichever is greater. Balance transfer fee – Either $5 or 3% of the amount of each transfer, whichever is greater. Subject to credit approval. Additional limitations, terms and conditions apply.

** For example: 20,000 points can be redeemed for $266 in airfare, which would typically require 26,600 points. Enjoy this benefit on any airline, with no blackout dates.